MINISTERS FROM both parts of the island were briefed yesterday in Dublin by Minister for Finance Brian Lenihan on the proposed National Asset Management Agency (Nama) and its implications for the property market, north and south of the Border.
A plenary meeting of the North South Ministerial Council (NSMC) at Farmleigh agreed that Mr Lenihan should hold discussions with his Northern Ireland counterpart, Minister of Finance Sammy Wilson, on co-ordinating the disposal of assets by both administrations, so as to avoid damaging the property market.
Government sources in Dublin said Mr Lenihan had given a “fairly detailed briefing” to the NSMC.
He had also undertaken to arrange for Mr Wilson, who was not present yesterday, to receive a briefing from the National Treasury Management Agency which is overseeing the establishment of Nama.
Representatives from the Northern Ireland Executive were concerned that Nama might sell property assets quickly and at greatly reduced prices, and that this would affect property values in the North.
“He allayed their fears on the issues by telling them there won’t be a fire sale,” Government sources told The Irish Times.
Nama’s function would be to seek the “best possible financial return” on a case-by-case basis on assets transferred to it and this might
well involve holding assets back from sale until the market had recovered.
The North’s First Minister Peter Robinson later described the “commentary and summary” given by Mr Lenihan as “very helpful”.
He said the Northern Ireland Executive was also “looking at the disposal of assets” and there would be assets held by Nama which would “impact on Northern Ireland”.
“Those disposals need to be handled in a way that we don’t swamp the property market and impact adversely on property prices in Northern Ireland.
“It’s also important that we do it in a co-ordinated way to ensure that we can instil confidence within the property market in Northern Ireland and not the reverse.
“So there is work to be done and we have recognised the importance of having some work carried out by the finance ministers in both jurisdictions and we are happy that that meeting takes place, it is important that it does,” Mr Robinson said.
The North’s Deputy First Minister Martin McGuinness said: “We know that the Nama situation is going to impact on the North and it’s very, very important that our finance ministers work together to ensure the proper management of all of that because this could have very severe implications for our property market in the North if it’s not handled properly.
“So I think that it’s very encouraging that out of today’s meeting we’ve put in place a mechanism through the two finance ministers to look at the situation and to come back to us with a report.
“So I think that, from our perspective, it has been very, very important to get that commitment today and, as Peter has said, the rundown that we were given by Brian Lenihan during the course of the meeting, of the implications of Nama for all of us on the island was very, very worthwhile,” Mr McGuinness said.
Taoiseach Brian Cowen told reporters: “The Minister for Finance brought the meeting up to date regarding the whole project we have, the initiative we are taking in relation to how we deal with the impaired assets in the banks, and that is through the [National] Asset Management Agency, as you will be aware.
“Some of these assets are located in the Republic, in Northern Ireland, in other parts, in other jurisdictions as well, and it’s important we fully agree in our discussions that both ministers, the Minister for Finance in the Republic and the Minister for Finance in the Northern Ireland Executive would meet to consider the implications over the period ahead that these matters will have.”